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410. City of Cocoa I Employee Benefit Highlights 12020-2021 <br /> Deferred Compensation 457(b) <br /> The City offers a voluntary 457 Deferred Compensation retirement savings There are strict Internal Revenue Code limits to the amount an employee <br /> plan through either the International City Management Association (ICMA) may contribute each year.There are two(2)"Catch-Up"provisions that allow <br /> or Nationwide*.A 457 plan is a supplemental retirement savings program employee to contribute over-and-above the normal annual contribution <br /> that allows employee to make contributions on a pre-tax basis.Federal,and amount.However,employee will pay taxes on the amount withdrawn and are <br /> in most cases,State income taxes(Florida does not have a State income tax) required to begin withdrawing from the account by a certain age. <br /> are deferred until assets are withdrawn, usually during retirement when <br /> employee may be in a lower tax bracket.A summary of the 457 plan's benefits *Nationwide and ICMA offer loans under certain circumstances.See plan representative <br /> for more details. <br /> are provided below. <br /> • Employee can reduce current income taxes while investing for **Since dollar cost averaging involves continuous investing,regardless of fluctuating <br /> prices,investors must consider their level of comfort in continuing to invest during a <br /> retirement. declining market.Dollar cost averaging does not assure profit or protect against loss in <br /> • Employee earnings accumulate tax-deferred. a declining market. <br /> • Employee can dollar cost average** through convenient payroll <br /> deductions. Nationwide Retirement Solutions <br /> • Employee may be allowed to make additional'catch-up"contributions Customer Service:(877)677-3678 I www.nrsforu.com <br /> if employee is 50(or older)or within three(3)years of normal retirement <br /> age and already contributing the maximum to the plan. ICMA Retirement Corporation <br /> • If there is a job change,employee has the flexibility to move account Customer Service:(800)669-7400 I www.icmarc.org <br /> into employee's new Employer's retirement plan. <br /> • If employee retires early,but at least at the age of 591/2,there is no <br /> penalty for withdrawals. <br /> 457 Plans Advantages Include: <br /> • Ability to increase, decrease, stop and restart contributions as <br /> employee wishes without fees or penalties. <br /> • Choose from a wide range of investment options selected by <br /> employer for the plan. There are no restrictions or charges for <br /> reallocating investment mix within a reasonable limit and all funds <br /> offered are no-load. <br /> • There are no minimum investment requirements. <br /> • Employee's designated beneficiaries are entitled to receive all <br /> remaining funds in employee's account in the event of death(Less <br /> any applicable taxes and/or penalties). <br /> • Flexible withdrawal payment options are available. Employee can <br /> determine the payment schedule that is right for them. <br /> • <br /> 29 <br /> 21 <br /> ©2016,Gehring Group,Inc.,All Rights Reserved <br />